T-0.1 - Act respecting the Québec sales tax

Section 199.1 Disposition versions

2012-12-07

199.1. Where a person acquires or brings into Québec property or a service partly for use in improving capital property of the person and partly for another purpose, for the purpose of determining an input tax refund of the person in respect of the property or service, the following rules apply:

(1)  despite section 34, that part of the property or service that is acquired or brought into Québec for use in improving the capital property and the remaining part of the property or service are each deemed to be a separate property or service that does not form part of the other;

(2)  the tax payable in respect of the supply or bringing into Québec of that part of the property or service that is acquired or brought into Québec for use in improving the capital property is deemed to be equal to the amount determined by the formula

A × B; and

(3)  the tax payable in respect of that part of the property or service that is not for use in improving the capital property is deemed to be equal to the difference between the tax payable (in this section referred to as the “total tax payable”) by the person in respect of the supply or bringing into Québec of the property or service, determined without reference to this section, and the amount determined under subparagraph 2.

For the purposes of the formula in subparagraph 2 of the first paragraph,

(1)  A is the total tax payable; and

(2)  B is the extent, expressed as a percentage, to which the total consideration paid or payable by the person for the supply in Québec of the property or service or the value of the property brought into Québec is or would be, if the person were a taxpayer within the meaning of the Taxation Act (chapter I-3), included in determining the adjusted cost base to the person of the capital property for the purposes of that Act.

1994, c. 22, s. 460; 1997, c. 85, s. 533; 2012, c. 28, s. 64.

1997-12-19

199.1. Where a person acquires or brings into Québec property or a service partly for use in improving capital property of the person and partly for another purpose, for the purpose of determining an input tax refund of the person in respect of the property or service,

(1)  notwithstanding section 34, that part of the property or service that is acquired or brought into Québec for use in improving the capital property and the remaining part of the property or service are each deemed to be a separate property or service that does not form part of the other;

(2)  the tax payable in respect of the supply or bringing into Québec of that part of the property or service that is acquired or brought into Québec for use in improving the capital property is deemed to be equal to the amount determined by the formula

A × B

where

(a)  A is the tax payable (in this section referred to as the “total tax payable”) by the person in respect of the supply or bringing into Québec of the property or service, determined without reference to this section; and

(b)  B is the extent, expressed as a percentage, to which the total consideration paid or payable by the person for the supply in Québec of the property or service or the value of the property brought into Québec is or would be, if the person were a taxpayer within the meaning of the Taxation Act (chapter I-3), included in determining the adjusted cost base to the person of the capital property for the purposes of that Act; and

(3)  the tax payable in respect of that part of the property or service that is not for use in improving the capital property is deemed to be equal to the difference between the total tax payable and the amount determined under paragraph 2.

1994, c. 22, s. 460; 1997, c. 85, s. 533.

1994-06-17

199.1. Where a person acquires or brings into Québec property or a service partly for use in improving capital property of the person and partly for another purpose, for the purpose of determining an input tax refund of the person in respect of the property or service,

(1)  the provision of that part of the property or service that is acquired or brought into Québec for use in improving the capital property and the provision of the remaining part of the property or service are each deemed to be a separate supply that is not incidental to the other;

(2)  the tax payable in respect of the supply of that part of the property or service that is acquired or brought into Québec for use in improving the capital property is deemed to be equal to the amount determined by the formula

                         A x B

where

(a) A is the tax payable (in this section referred to as the “total tax payable”) by the person in respect of the supply or bringing into Québec of the property or service, determined without reference to this section; and

(b) B is the extent, expressed as a percentage, to which the total consideration paid or payable by the person for the supply in Québec of the property or service or the value of the property brought into Québec is or would be, if the person were a taxpayer within the meaning of the Taxation Act (chapter I-3), included in determining the adjusted cost base to the person of the capital property for the purposes of that Act; and

(3)  the tax payable in respect of that part of the property or service that is not for use in improving the capital property is deemed to be equal to the difference between the total tax payable and the amount determined under paragraph 2.

1994, c. 22, s. 460.